CGST RATE NOTIFICATION
13/2019
Seeks to exempt the hiring of Electric buses by local authorities from GST
12/2019
Seeks to reduce the GST rate on Electric Vehicles, and charger or charging stations for Electric vehicles
AAR CASES
2019-TIOL-243-AAR-GST
TUI India Pvt Ltd
GST - The applicant company is engaged in providing travel arrangement, tour operator and related services - It approached the AAR seeking to know whether in case of accomodation provided only, 18% GST is chargeable on the service fee/convenience fee charged by it, where it satisfies the conditions of being a Pure Agent - It also sought to know if an option is available to a tour operator to charge 5% GST with no ITC or else charge 18% GST with full ITC.
Held - The applicant pays 18% GST on service fee & convenience fee or commission received from clients and also on target-based sales commission received from foreign hotel aggregators - Value of hotel accomodation paid by client, which it remitted by them to the foreign hotel/ hotel aggregator cannot be included in such taxable value as long as conditions of pure agent are satisfied - The applicant is required to deposit GST u/s 9(1) on amount received from clients on value of hotel accomodation service while acting as an agent u/s 2(15), as it is taxable person defined u/s 2(107) of the CGST Act and supplier u/s 2(105) of the Act - Moreover, tour operator services are covered under Entry (i) of Sr No 23 of Notfn No 11/2017-CT(R) dated 28.06.2017 - Hence 5% GST without ITC is payable subject to fulfilment of conditions - Option of paying GST @ 18% with ITC is not available: AAR
- Application disposed of: AAR
2019-TIOL-242-AAR-GST
Indian institute of corporate affairs
GST - The applicant is primarily engaged in induction & providing in-service training to Indian Corporate Law Service officers, providing capacity building & training programmes in various fields and in performing policy advisory functions, public outreach & stakeholder consultations through forums and seminars - The applicant approached the AAR seeking to know if GST is leviable on services provided in furtherance of MoU for providing drinking water in covered villages, providing solar street lights in villages & improving village sanitation by building household toilets - The applicant also sought to know if any exemption is available on such activities.
Held - The amount received from the other signatory to the MoU is not grant-in-aid and is in fact, consideration for supply of goods or services under such agreement - Hence GST is payable u/s 9(1) of the Act - Such supply of goods or services are not exempted from payment of GST as per Sr No 76 of Notfn No 12/2017-CT(R) dated 28.06.2017: AAR
- Application disposed off: AAR
AAAR CASE
2019-TIOL-59-AAAR-GST
Bengal Rowing Club
GST - A pplicant is providing its members privileges and amenities of a club such as swimming facility, gymnasium, indoor games and restaurant service - They had sought an advance ruling on the rate of GST applicable on the services it offers along with the supply of food, services like valet parking, music, decoration and other such services associated with organizing social gatherings and they also wanted to know the admissible proportion of input tax credit for services other than the supply of food - AAR had held that Supply of food, by way of or as part of any service or in any other manner whatsoever, from the applicant's restaurant is classifiable under SAC 9963 and taxable under Sl No. 7(i) or 7(iii) of the Notfn 11/2017-CT (Rate) depending upon the criteria mentioned therein; that if food is supplied by way of or as part of services associated with organising social events at the club premises, together with renting of such premises, it will be classifiable under SAC 9963 and taxable under Sl No. 7(vii) of said notfn; that all other services offered by applicant are classifiable under SAC 9995 and taxable under Sl No. 33 of said rate notification; that the applicant should apply the provisions under section 17(2) & (6) of GST Act, read with rules 42 and 43 of GST Rules, for reversal of input tax credit, treating supplies, if any, taxable under Sl No. 7(i) of said rate notification, as exempt supplies - appeal before AAAR - Appellant submits that the AAR failed to appreciate that food supplied for social gatherings cannot be categorised as composite services and taxable @18% and that all restaurant services are to be taxed @5% with no Input tax credit; that a Member's club should be excluded from taxation under the GST Act on the principle of mutuality.
Held: Under serial no. 7(v) it is seen that any supply of food or beverage at any event, whether or not served at an outdoor or an indoor function squarely falls under the said category; an ‘event' is a planned or social occasion whereas a ‘function' is an official ceremony or a formal social event such as a party or a special meal, at which a lot of people are usually present - provisions of sr. no. 7(v) is not restricted to exhibition halls or marriage halls and includes all indoor and outdoor functions - qualifying criteria under the notification entry is that firstly, it must be an event based function and secondly, it must be occasional in nature - social get-togethers and parties are special social functions and definitely occasional in nature - services provided by the club at these social get-togethers are not regular restaurant services - so the food supplied at events which are occasional in nature will unambiguously fall under sr. no. 7(v) of the rate notification - therefore, it is held that supply of food at events organised by the appellant in the club premises is taxable under sr. no. 7(v) and taxed @18% - no other infirmity in the order of the WBAAR - Ruling dated 28.03.2019 stands modified to this extent: AAAR
- Appeal disposed of: AAAR
HIGH COURT CASES
2019-TIOL-1636-HC-PATNA-GST
Polycab Wires Pvt Ltd Vs UoI
GST - Carrying forward of CENVAT Credit as a transitional credit - Petitioner complains of discriminatory action by the respondent no. 3 and 4 in not extending the benefit of Notification No. 31 of 2018 dated 06.08.2018 - a representation was also made by the petitioner to the Commissioner, the nodal officer, however, the same has remained pending and has not been adjudicated upon - petition filed.
Held: Laches is on the part of the Nodal Officer - respondent authority to address on the issue and take all necessary steps for its disposal in accordance with law with opportunity of hearing to the petitioner within a period of six weeks - petition disposed of: High Court
- Petition disposed of: PATNA HIGH COURT
2019-TIOL-1634-HC-P&H-GST
Vikas Goel Vs Deputy Director
GST - Petitioner has filed second petition under Section 439 of the Code of Criminal Procedure, 1973 for grant of regular bail.
Held: Perusal of record shows that there are serious allegations against the present petitioner, who is the main accused, that he alongwith co-accused, by falsely showing bogus billing etc., adjusted the amount without any actual transportation of the goods or sale of goods etc. - Only paper transactions were done and the accused have wrongly claimed the relief of more than Rs. 80 crore and the case is at preliminary stage - Apex Court in the case of State of Bihar and another Vs. Amit Kumar @ Bacha Rai has held that the accused charged with economic offence of huge magnitude and alleged to be the kingpin of crime, is not entitled to the benefit of bail - not a fit case where the petitioner is entitled to the benefit of regular bail - no merit in petition, hence dismissed: High Court
- Petition dismissed: PUNJAB AND HARYANA HIGH COURT
2019-TIOL-1633-HC-MP-GST
Nitin Nikhra Vs State Of MP
GST - CGST Act, 2017 - Section 132 of the Act prescribes punishment for certain offences and maximum sentence which can be awarded, is five years - Section 167 (2) of the Cr.P.C provides 60 days time to the investigating agency to submit charge sheet for the offences where investigation relates to any offence other than total imprisonment for life or imprisonment for a term of not less than 10 years - Here the maximum sentence punishable is imprisonment for five years therefore, respondent had to file the charge sheet within 60 days - But admittedly, charge sheet has not been filed, therefore, right of 'default bail' accrued to the applicant after completion of 60 days - It was the duty of the investigating agency to submit charge sheet within the stipulated period, but same has not happened - right has been accrued to the applicant, however, bail can granted to the applicant with certain stringent conditions: High Court [para 7 to 10]
- Bail granted: MADHYA PRADESH HIGH COURT
ARTICLES
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